Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-40

This is a very encouraging quarterly report. There are a couple of things that I think are worth considering.

Firstly, it seems that our fabrication partner EM has coordinated all 3 fabs in producing a resolution to what must have been a common problem - the warping of the wafers. Even the 6" fab. Otherwise, there would have to be an amazing coincidence that all 3 are going to provide wafers at the same time.

Secondly, the timing of late September to early October for the AGM is a very narrow window which suggests to me that wafers are very close to being finalised at the time of writing the report. Otherwise, a broader window would have been given, if any timing at all. Working back from the AGM date also suggests that wafers might start to be delivered within the next week. For instance, for an AGM to be held at the end of the 3rd week in September (say), would require notification at the start of September I.e. 3 weeks. So all testing of wafers including programing of software to fix the "noise" issue and making sure that everything is ok would need to be completed by the end of August -assuming that some confidence in the results is required prior to announcing the AGM. And this is just for wafers and not packaged chips. So I have absolutely no doubt that wafers are pretty much done now.

The company exudes confidence with Fred throwing more of his own money at this. I'm a bit surprised at this confidence myself as the "novel" modifications made to the Gen I chips have yet to be proven as solving all problems. Yet they swung directly into pre-production. So they must have a lot of faith in what they are doing.

Anyway, we wait - again. Hopefully, with more good news to come : )